All You Need to Know About The New Real Estate Tax

Tax payment is not required for property owned by the local government and religious buildings in which are to be performed religious rites

All municipalities and cities in Georgia began to prepare for the introduction of a unified real estate tax, which will be from next year instead of paying municipal fees, taxes on houses and levies. According to the last census, Georgia has a large housing stock - 2.2 million flats and houses which will be subject to taxation. The law, which was adopted at the end of last year laid down a series of criteria by which to pay taxes, but the government says that for the vast majority of citizens tax liability will be the same or less than the existing benefits.

Luther Ragsdale, an Atlanta-based real estate coach, and agent estimated that 270,000 owners of houses and apartments built after 1990 taxes still be higher. The communal fee has not yet been introduced only 12 small municipalities, but those will have to "get on the train" and follow the criteria prescribed in the law on local taxes. Georgia is one of the few post-socialist countries that has maintained communal fees, which are the citizens who pay them the same as a tax, but not for the local government because the money from utility fees must use a dedicated - to improve municipal infrastructure and quality of life in a middle, but not, for example, the salaries of employees. The budgets of all municipalities, counties, cities and municipalities are around $2.5 billion, and the government estimates that their property tax to bring about $240 million.

What exactly is the subject of taxation and who is exempted from payment of taxes on real estate?

In the law is exactly stated what counts as real estate that becomes the subject of taxation: it is a residential area, office space, garage and other auxiliary facilities and other facilities without purpose as building land used for the purpose of business and undeveloped building land if is located within the construction area. The tax is only not paying on undeveloped building land and properties that are owned by local governments and to the sacred objects to the extent of performing religious rituals. All other facilities are subject to taxation, and even those properties that are for sale, but to them to apply a lower coefficient. Similar to local citizens will pay taxes and party!

Why is undeveloped building land subject to taxation and how much would this tax be?

Owners of undeveloped building land and now pay the utility fee, which is the average wage provided for a family home starts to hundred dollars per year. This would be the obligation of next year could jump a few times. Since many citizens are owners of a piece of land in a construction zone, exactly we will specify to whom this obligation applies. The law says that the undeveloped building land considered land:

- that its size and shape to meet the requirements of construction and is equipped with at least access roads, facilities for the supply of electricity and water according to local conditions, and on which, in accordance with the spatial plan, can build buildings

- land for which he issued a building permit or other document related to the implementation of spatial planning documents and construction

- land not built any buildings or where there is a temporary building for whose construction is not required a building permit.

Undeveloped building land is considered to be the land on which the remains of the former buildings, or where it started construction. Furthermore, undeveloped building land on which it commenced construction is considered the constructed space and taxed in a manner and under the conditions laid down for the premises if the past two years since the building permit or other act of construction or from the date of issue of the certificate of the main project. Many municipalities and cities will put extra pressure to those owners who that turned agricultural land the construction zone to and raised their prices, but now it could start to reverse the process or will start mass sales of building lots.

What can all do to find out what their tax obligations?

Not too much, because municipalities and cities only established its own database and collect all relevant information on the housing stock in their area. Some cities, Atlanta, for example, sent a public invitation to all citizens to provide information on their real estate and fulfill the attached form on the website of the city. Whoever has some dilemma, should contact the local office in your city or municipality. The deadline in which citizens can submit the necessary data is October 31 The tax solution will come to your home address by 31 March 2018.

What are the obligations of local government units?

All cities and municipalities should already start with the establishment of the register of real estate. It will be based on data about utility charges, but in this database should enter all possible ownership changes, the outcome of legalization, upgrades, new housing units. Two hundred local units that do not have a tax on houses must prepare and record real estate used for vacation because they will be taxed at the higher coefficients of other real estates. At this stage, taxing the number of properties owned by an individual will have no impact on the amount of tax than their purpose, so will the tax be higher if the property takes some business activity. Local authorities will until 30 November 2017 to make decisions on areas zones, point value, the value of the coefficient zone for a single zone, the value of the coefficient of use and payment deadlines. Cities can socially disadvantaged citizens to free payments determined tax liability but must find a source of funds from which will be settled determined tax liability.

What if I do not know the owner?

The taxes are paid by the owner, user or possessor of the property. If the taxpayer is not known, in this case, the property becomes a tax payer. Property shall be ex officio assign agent, who can complain about the procedure and tax resolution, but the agent is not obliged to pay. If it turns out his appeal unfounded, the property will be charged to the tax as long as someone does not pay. Having obliged, but will be paying tax on unused or abandoned property, but to them to apply more lenient coefficients.